Transfer deadline day may be over, but the real juicy business has just got underway. Sainsbury’s has had a preliminary £1.3 billion offer for Argos owner Home Retail Group accepted, and now has until 5pm on February 23rd to make a firm bid.
The deal would see Argos outlets incorporated into Sainsbury’s stores, which would -- in theory -- transform the mighty orange one into a food and non-food retailer capable of taking on both online stores like Amazon, as well as rival supermarkets. Sainsbury’s also believes it’ll be able to generate savings of £120m a year by 2019 by gobbling up Argos stores, though it’ll have to part with around £140 million over the next three years.
If the takeover goes through, it would also be great news for the internal layout of Sainsbury's stores. At my local branch, we’ve currently got vacuum cleaners and games next to the cooked meats section. What’s that all about? [Guardian]